(5) The projected schedule of curtailments of pipeline supplies of gas for the allocation period, and a description of any curtailment plan in effect for the market area to be served by the SNG plant and an estimate of the effect of such plan.

(6) A description of the rate structures of the SNG manufacturer including pricing policies for SNG and other supplemental sources of gas.

(7) A complete description of the proposed feedstock, including the supplier(s), volumes, prices, and technical specifications of the feedstock.

(8) The design and practical feedstock capacity of the SNG plant.

(9) The proposed product needed for Btu-enrichment requirements of the SNG plant, including source, volumes, and price.

(10) The proposed SNG plant fuel, including sources volumes.

(11) Other information which may be identified by DOE as necessary for a comprehensive evaluation of the application.

(e) Special limitations. Unless directed by DOE upon application pursuant to Subpart G of Part 205 of this chapter or waived upon its own motion, no supplier shall supply and no wholesale purchaser or end-user shall accept or use naphtha for synthetic natural gas feedstock in excess of the sum of one hundred percent of the base period uses for the four calendar quarters.

(f) Reporting requirements. Each SNG manufacturer shall report to DOE in a manner prescribed by DOE on the usage of crude oil or allocated products for SNG production.

(g) Review. Each firm operating an SNG plant shall be subject to review at the discretion of DOE to assure that the firm is continuing to operate the plant in accordance with the factual basis for and the terms and conditions of the allocation order and the applicable regulations. On the basis of such a review the DOE may determine that adjustment or rescission of the allocation is appropriate. Any such rescission or adjustment to an allocation order shall be upon reasonable notice given to all interested parties, with an opportunity for a hearing provided to

the operator of the affected SNG plant.

(Emergency Petroleum Allocation Act of 1973, 15 U.S.C. 751 et seq., Pub. L. 93-159, as amended, Pub. L. 93-511, Pub. L. 94-99, Pub. L. 94-133, Pub. L. 94-163, and Pub. L. 94385; Federal Energy Administration Act of 1974, 15 U.S.C. 787 et seq., Pub. L. 93-275, as amended, Pub. L. 94-332, Pub. L. 94-385, Pub. L. 95-70, and Pub. L. 95-91; Energy Policy and Conservation Act, 42 U.S.C. 6201 et seq., Pub. L. 94-163, as amended, Pub. L. 94-385, Pub. L. 95-70, Pub. L. 95-619, and Pub. L. 96-30; Department of Energy Organization Act, 42 U.S.C. 7101 et seq., Pub. L. 95-91; E.O. 11790, 39 FR 23185; E.O. 12009, 42 FR 46267)

[42 FR 54406, Oct. 6, 1977, as amended at 44 FR 60649, Oct. 19, 1979; 45 FR 74673, Nov. 10, 1980]

APPENDIX A TO SUBPART A OF PART 211

SPECIAL RULE No. 7-SPECIAL SET-ASIDE PROCEDURES FOR MIDDLE DISTILLATES

1. Scope. This Special Rule provides for a set-aside program for middle distillates for the period April 1, 1979 through June 30, 1979, as provided below, notwithstanding the exemption of middle distillates from the Mandatory Petroleum Allocation and Price Regulations effective Juy 1, 1976.

2. Provision for middle distillate set-aside. Notwithstanding the provisions of paragraphs (b) and (c) of § 210.35 of Part 210 of this chapter and of paragraphs (b)(5) and (6) of § 211.1 of this part, a set-aside is hereby established for the period April 1, 1979 through June 30, 1979, for designated middle distillates for assignment by State Offices in accordance with the provisions of this Special Rule.

For purposes of this Special Rule the term middle distillates includes the following, as defined in § 212.31 of Part 212 of this chapter: No. 1 heating oil, No. 1-D diesel fuel, No. 2 heating oil, No. 2-D diesel fuel and kerosene.

3. State election to participate in set-aside program. The special set-aside procedures provided in this Special Rule will not be in effect in a particular State prior to notification to the office of Fuels Regulation, ERA, by the appropriate State Office that such State elects to participate in the set-aside program provided for by this Special Rule.

4. State representative. A State electing to participate shall notify each prime supplier operating within that State of such election. A prime supplier receiving such notification shall designate a representative for that State to act for and on behalf of the prime supplier with respect to set-aside petitions

and assignments from the set-aside to be supplied by that prime supplier. The appropriate State Office shall be informed in writing of such designation within five (5) days following the State's notification to the prime supplier of its election to participate. The State Office shall to the maximum extent possible consult with a prime supplier's representative prior to issuing any authorizing document affecting set-aside volumes to be provided by the prime suppli

er.

5. Set-aside volume. A prime supplier shall inform each appropriate participating State Office monthly of the estimated volume of middle distillates to be sold into a State for consumption within that State. The setaside volume available in a participating State for a particular month shall be that percent elected by the State. The amount will be calculated by multiplying the elected percentage of no more than four (4) percent by each prime supplier's estimated portion of its total supply for that month which will be sold into that State's distribution system for consumption within the State. The setaside for a particular month cannot be accumulated from prior months or deferred to later months; it shall be made available from stocks of prime suppliers whether directly or through their wholesale purchaser-reseller.

6. Eligible recipients of set-aside volumes. The set-aside provided for by this Special Rule shall be utilized by participating State Offices in issuing authorizations to applicants for designated middle distillates to be supplied by a prime supplier to meet hardship and emergency requirements of wholesale purchaser-consumers and end-users. To facilitate relief of the hardship and emergency requirements of wholesale purchaserconsumers and end-users, the State Office may also direct that a wholesale purchaserreseller be supplied from the set-aside to enable the wholesale purchaser-reseller to supply the emergency and hardship needs of wholesale purchaser-consumers and endusers with whom the wholesale purchaserreseller had a supplier/purchaser relationship on March 1, 1979.

7. Term of assignments. Assignments to eligible end-users and wholesale purchaserconsumers under section 6 of this Special Rule by a State Office shall be made to meet the emergency or hardship conditions being experienced during that period. Assignments to wholesale purchaser-resellers shall be only for the period necessary to preclude hardship and provide emergency requirements to that wholesale purchaserreseller's wholesale purchaser-consumers and end-users. No assignments under this Special Rule shall relate to any period subsequent to June 30, 1979.

8. Application for assignment. All applications for assignment under this Special Rule

shall be made to the State Office having jurisdiction over the State in which the applicant conducts its business operations, in accordance with the procedures set forth in §§ 205.211-218 of Subpart Q of Part 205 of this chapter with respect to the state setaside, except as otherwise provided in this Special Rule. Within five (5) days of its application for assignment of middle distillates under these special procedures, an applicant shall submit to the State Office a written certification that such application was for a valid hardship or emergency situation.

9. Approval of application. If a State Office approves an application for assignment, it shall assign a prime supplier an amount from the set-aside to the applicant necessary to meet the expressed emergency or hardship condition. To determine an appropriate prime supplier, the State Office may coordinate with the State representatives of prime suppliers.

10. Authorizing document. The State Office shall issue to an applicant granted an assignment a document authorizing such assignment. A copy of the authorizing document (or a summary) shall also be provided by the State Office to the designated State representative of the prime supplier assigned to the applicant. An authorizing document not presented to either the prime supplier or a designated local distributor of the prime supplier within ten (10) days of issuance shall expire after that ten-day period. The State Office shall by the twentieth day of each month submit to the appropriate DOE Regional Office copies of all authorizing documents issued during the previous month and a tabulation of the usage of the middle distillate set-aside during the previous month.

11. Supplier's responsibilities. When presented with an authorizing document, suppliers shall provide the assigned amount of middle distillates to an applicant. The authorizing document shall entitle the applicant to receive product from any convenient local distributor of the prime supplier from which the set-aside assignment has been made. Wholesale purchaser-resellers of prime suppliers shall, as non-prime suppliers, honor such authorizing documents upon presentation and shall not delay deliveries required by the authorizing documents while confirming such deliveries with the prime supplier. Any non-prime supplier which provides middle distillates pursuant to an authorizing document shall in turn receive from its prime supplier an equivalent volume of the product. The requirements of paragraph (b) of § 210.62 of Part 210 of this chapter continue to apply to suppliers to whom an authorizing document is presented pursuant to this Special Rule to prohibit any form of discrimination (including price

discrimination) which has the effect of circumventing, frustrating or impairing the objectives, purposes and intent of this Special Rule.

12. Prime suppliers. All prime suppliers shall supply designated middle distillates from their set-aside volume each month, as directed by the State Offices, not to exceed the total set-aside volume for such middle distillates for that month for the State concerned.

13. Release of set-aside. At any time during the month, a State Office may order the release of part or all of a prime supplier's setaside volume through the prime supplier's normal distribution system in the State.

14. Orders issued by State Offices. Authorizing documents and other orders issued pursuant to this Special Rule shall be in writing and effective immediately upon presentation to the prime supplier's designated State representative. Authorizing documents shall represent a call on the prime supplier's set-aside volumes for the month of issuance irrespective of the fact that delivery cannot be made until the following month. Any order issued by a State Office pursuant to this Special Rule may be appealed to the DOE Regional Office that has jurisdiction over the State involved, in accordance with the procedures set forth in Subpart H of Part 205 of this chapter. Any appeal from such an order shall be filed within ten (10) days of service of the order from which the appeal is taken. If a State Office fails to take action on an application within ten (10) days of filing, the applicant may treat the application as having been denied in all respects and may appeal therefrom as provided in this section.

(Emergency Petroleum Allocation Act of 1973, Pub. L. 93-159, as amended, Pub. L. 93-511, Pub. L. 94-99, Pub. L. 94-133, Pub. L. 94-163, and Pub. L. 94-385; Federal Energy Administration Act of 1974, Pub. L. 93-275, as amended, Pub. L. 94-385; Energy Policy and Conservation Act, Pub. L. 94-163, as amended, Pub. L. 94-385; E.O. 11790, 39 FR 23185; Department of Energy Organization Act, Pub. L. 95-91; E.O. 12009, 42 FR 46267) [44 FR 18643, Mar. 29, 1979]

SPECIAL RULE No. 9-SPECIAL ALLOCATION OF MIDDLE DISTILLATES FOR SURFACE PASSENGER MASS TRANSPORTATION

1. Scope. Notwithstanding the provisions of paragraphs (b) and (c) of § 210.35 of Part 210 of this chapter and of paragraphs (b)(5) and (b)(6) of § 211.1 of this part, this Special Rule establishes a special allocation program for middle distillates.

2. Definitions. For purposes of this Special Rule, the relevant definitions of § 211.51 of Part 211 of this chapter shall apply, except that the following definitions shall apply:

"Base period" means the first calendar month prior to May 1979 in which a wholesale purchaser purchased or obtained middle distillate volumes.

"Current requirements" means, (a) with respect to a wholesale purchaser-consumer or end-user, the volume of middle distillates needed by the wholesale purchaser-consumer or end-user to meet its present supply requirements for middle distillates for use in surface passenger mass transportation, but does not include any amounts which the wholesale purchaser-consumer or end-user purchases or obtains for resale or accumulates as an inventory in excess of that purchaser's customary inventory maintained in the conduct of its normal business practices; or, (b) with respect to a wholesale purchaser-reseller, the volume of middle distillates needed by the wholesale purchaser-reseller to meet its present requirements to supply middle distillates to wholesale purchaserconsumers, end-users or other wholesale purchaser-resellers for ultimate use in surface passenger mass transportation.

"Middle distillates" means any of the following, as defined in § 212.31 of Part 212 of this chapter: No. 1 heating oil, No. 1-D diesel fuel, No. 2 heating oil, No. 2-D diesel fuel and kerosene.

"Surface passenger mass transportation" means any activity in which passengers are transported by means of a commuter bus or rail system (including a metropolitan mass transit system), a school bus, a charter bus, a commuter ferry, or an intercity passenger bus or train.

3. General Rule. Each supplier of middle distillates shall supply all wholesale purchaser-consumers, all end-users, and all wholesale purchaser-resellers with their current requirements for middle distillates which have been certified to that supplier in accordance with the provisions of this Special Rule.

4. Certification Requirements.

(a) End-users. An end-user may certify to any supplier its current requirements for middle distillates for surface passenger mass transportation.

(b) Wholesale purchaser-consumers. A wholesale purchaser-consumer may certify to its base period supplier its current requirements for middle distillates for ultimate use in surface passenger mass transportation.

(c) Wholesale purchaser-resellers. A wholesale purchaser-reseller may certify to its base period supplier its current requirements for: (i) Any end user; (ii) any wholesale purchaser-consumer it supplied during the base period (in accordance with paragraph (d) of this section; (iii) any wholesale purchaser-consumer it agrees to supply under section (7); (iv) any assigned purchas

ers, and (v) any certification for volumes to be supplied pursuant to this Special Rule.

(d) Purchasers with more than one base period supplier. A purchaser or supplier which purchased or obtained middle distillates during the base period from more than one supplier may certify to each such supplier a percentage of its current requirements for surface passenger mass transportation which does not exceed the percentage of the total volumes of middle distillates purchased or obtained by the purchaser from that supplier in the base period.

5. Validation of Certifications. In the event that a purchaser and its supplier cannot agree on the volume of middle distillates which the supplier is required to supply to the purchaser under this Special Rule, the purchaser may request validation of the required volume from the appropriate ERA Regional Office. From the time the supplier receives certification, the supplier shall supply the purchaser any volumes which are not in dispute. If ERA determines that the purchaser is entitled to volumes in excess of those supplied by the supplier during the period in which certification was in dispute, ERA may order the supplier to supply such increased requirements and to supply the purchaser with additional volumes of middle distillates equal to the amount the purchaser would have received if the increased requirements had been supplied during such period.

6. Assignment of suppliers. Any purchaser which is unable to purchase or obtain its total current requirements for ultimate use in surface passenger mass transportation may apply to the appropriate ERA Regional Office as provided in Subpart C of Part 205 of this chapter to be assigned a supplier: Provided, That, an end-user in a State in which there is a State Office must apply to that State Office as provided in Subpart Q of Part 205 of this chapter for the assignment of a supplier. The purchaser may be assigned one or more suppliers and the amount of its current requirements to be supplied by each supplier may be specified.

7. Mutual agreements. As an alternative to the procedures set forth in sections (5) and (6) of this Special Rule, a supplier of middle distillates may agree to supply that portion of the current requirements of a wholesale purchaser-consumer which has been unable to obtain the full amount of its current requirements from its base period suppliers.

8. Normal business practices; non-discriminatory pricing. The requirements of paragraphs (a) and (b) of § 210.62 of this chapter shall apply to suppliers to prohibit any practice or any form of discrimination (including price discrimination) which has the effect of circumventing, frustrating or impairing the objectives, purposes and intent of this Special Rule.

(Emergency Petroleum Allocation Act of 1973, 15 U.S.C. 751 et seq., Pub. L. 93-159, as amended, Pub. L. 93-511, Pub. L. 94-99, Pub. L. 94-133, Pub. L. 94-163, and Pub. L. 94385; Federal Energy Administration Act of 1974, 15 U.S.C. 787 et seq., Pub. L. 93-275, as amended, Pub. L. 94-332, Pub. L. 94-385, Pub. L. 95-70, and Pub. L. 95-91; Energy Policy and Conservation Act, 42 U.S.C. 6201 et seq., Pub. L. 94-163, as amended, Pub. L. 94-385, and Pub. L. 95-70; Department of Energy Organization Act, 42 U.S.C. 7101 et seq., Pub. L. 95-91; E.O. 11790, 39 FR 23185; E.O. 12009, 42 FR 46267)

[44 FR 56889, Oct. 2, 1979, as amended at 45 FR 6919, Jan. 31, 1980]

SPECIAL RULE NO. 10-SPECIAL SET-ASIDE PROCEDURES FOR MIDDLE DISTILLATES

1. Scope. This Special Rule provides for a set-aside program for middle distillates, effective July 1, 1979, as provided below, notwithstanding the exemption of middle distillates from the Mandatory Petroleum Allocation and Price Regulations effective July 1, 1976.

2. Provision for middle distillate set-aside. Notwithstanding the provisions of paragraphs (b) and (c) of § 210.35 of Part 210 of this chapter and of subparagraphs (b)(5) and (6) of § 211.1 of this Part, a set-aside is hereby established, effective July 1, 1979, for designated middle distillates for assignment by State Offices in accordance with the provisions of this Special Rule.

For purposes of this Special Rule the term middle distillates included the following, as defined in § 212.31 of Part 212 of this chapter: No. 1 heating oil, No. 1-D diesel fuel, No. 2 heating oil, No. 2-D diesel fuel and kersoene.

3. State election to participate in set-aside program. The special set-aside procedures provided in this Special Rule will not be in effect in a particular State prior to notification to the Office of Fuels Regulation, ERA, by the appropriate State Office that such State elects to participate in the set-aside program provided for by this Special Rule.

4. State representative. A state electing to participate shall notify each prime supplier operating within that State of such election. A prime supplier receiving such notification shall designate a representative for that State to act for and on behalf of the prime supplier with respect to set-aside petitions and assignments from the set-aside to be supplied by that prime supplier. The appropriate State Office shall be informed in writing of such designation within five (5) days following the State's notification to the prime supplier of its election to participate. The State Office shall to the maximum extent possible consult with a prime supplier's representative prior to issuing any authorizing document affecting set-aside

volumes to be provided by the prime suppli

er.

5. Set-aside volume. A prime supplier shall inform each appropriate participating State Office monthly of the estimated volume of middle distillates to be sold into a State for consumption within that State. The setaside volume available in a participating State for a particular month shall be that percent elected by the State. The amount will be calculated by multiplying the elected percentage of no more than four (4) percent by each prime supplier's estimated portion of its total supply for that month which will be sold into that State's distribution system for consumption within the State. The setaside for a particular month cannot be accumulated from prior months or deferred to later months; it shall be made available from stocks of prime suppliers whether directly or through their wholesale purchaser-resellers.

6. Eligible recipients of set-aside volumes. The set-aside provided for by this Special Rule shall be utilized by participating State Offices in issuing authorizations to applicants for designated middle distillates to be supplied by a prime supplier to meet hardship and emergency requirements of wholesale purchaser-consumers and end-users. To facilitate relief of the hardship and emergency requirements of wholesale purchaserconsumers and end-users, the State Office may also direct that a wholesale purchaserreseller be supplied from the set-aside to enable the wholesale purchaser-reseller to supply the emergency and hardship needs of wholesale purchaser-consumers and endusers with whom the wholesale purchaserreseller had a prior supplier/purchaser relationship.

7. Term of assignments. Assignments to eligible end-users and wholesale purchaserconsumers under section 6 of this Special Rule by a State Office shall be made to meet the emergency or hardship conditions being experienced during that period. Assignments to wholesale purchaser-resellers shall be only for the period necessary to preclude hardship and provide emergency requirements to that wholesale purchaserreseller's wholesale purchaser-consumers and end-users.

8. Application for assignment. All applications for assignment under this Special Rule shall be made to the State Office having jurisdiction over the State in which the applicant conducts his business operations, in accordance with the procedures set forth in Sections 205.211-218 of Subpart Q of Part 205 of this chapter with respect to the State set-aside, except as otherwise provided in this Special Rule. Within five (5) days of making an oral application for assignment of middle distillates under these special procedures, an applicant shall submit to the State Office a written certification that

such application was for a valid hardship or emergency situation.

9. Approval of application. If a State Office approves an application for assignment, it shall assign a prime supplier an amount from the set-aside to the applicant necessary to meet the expressed emergency or hardship condition. To determine an appropriate prime supplier, the State Office may coordinate with the State representatives of prime suppliers.

10. Authorizing document. The State Office shall issue to an applicant granted an assignment a document authorizing such assignment. A copy of the authorizing document (or a summary) shall also be provided by the State Office to the designated State representative of the prime supplier assigned to the applicant. An authorizing document not presented to either the prime supplier or a designated local distributor of the prime supplier within ten (10) days of issuance shall expire after that ten-day period. The State Office shall by the twentieth day of each month submit to the appropriate DOE Regional Office copies of all authorizing documents issued during the previous month and a tabulation of the usage of the middle distillate set-aside during the previous month.

11. Supplier's responsibilities. When presented with an authorizing document, suppliers shall provide the assigned amount of middle distillates to an applicant. The authorizing document shall entitle the applicant to receive product from any convenient local distributor of the prime supplier from which the set-aside assignment has been made. Wholesale purchaser-resellers of prime suppliers shall, as non-prime suppliers, honor such authorizing documents upon presentation and shall not delay deliveries required by the authorizing documents while confirming such deliveries with the prime supplier. Any non-prime supplier which provides middle distillates pursuant to an authorizing document shall in turn receive from its prime supplier an equivalent volume of the product. The requirements of paragraph (b) of § 210.62 of Part 210 of this chapter continue to apply to suppliers to whom an authorizing document is presented pursuant to this Special Rule to prohibit any form of discrimination (including price discrimination) which has the effect of circumventing, frustrating or impairing the objectives, purposes and intent of this Special Rule.

12. Prime suppliers. All prime suppliers shall supply designated middle distillates from their set-aside volume each month, as directed by the State Offices, not to exceed the total set-aside volume for such middle distillates for that month for the State concerned.